Mumbai: Vedanta Ltd, one of the world’s leading diversified natural resource companies, said on Friday it is implementing the approved resolution plan for Ferro Alloys Corporation.
The acquisition will complement the company’s existing steel business as the vertical integration of Ferro manufacturing capabilities has the potential to generate significant efficiencies.
“Under the order dated January 30 of National Company Law Tribunal Cuttack, Vedanta Ltd is implementing the approved resolution plan for Ferro Alloys Corporation Ltd,” the company said in a statement.
The consideration is in the form of upfront cash and non-convertible debentures which will mature in four equal instalments over a period of four-years whereby management control of Ferro will be taken by the company.
“The consideration payable for the acquisition of Ferro on debt and cash-free basis under the approved resolution plan is Rs 10 crore as well as equivalent of cash balance in Ferro’s subsidiary Facor Power Ltd as upfront payment and zero-coupon, secured and unlisted non-convertible debentures of aggregate face value of Rs 270 crore to the financial creditors payable equally over four years commencing March 2021,” read the statement.
Facor is a company in the business of producing ferroalloys and owns a ferrochrome plant with a capacity of 72,000 tonnes per annum, two operational chrome mines and 100 megawatt of captive power plant through its subsidiary Facor.